How to Find Angel Investors

To find angel investors requires a bit of groundwork and the use of one’s resources. In order to understand what an angel investor is, one needs to understand why he or she would need one. "Angel investor" is a term for a person willing to invest financial resources into a business and/or idea. He or she invests in projects that do not qualify for regular financing due to being risky or unproven. If you are an entrepreneur looking for financial backing, you need only to look around for an angel investor.

Family and Friends

Families and friends are excellent resources to turn to when looking for financial backing. They can play a role in your success because they often believe in your project. If they believe in the project, they may be willing to help fund it. The best way to get financial assistance from family and friends is to set up a meeting. The meeting should allow them to see the project and how their contribution would work to help it to life. In addition, set up terms for how their investment will be used. Determine if it would be a loan or equity in the company. If family or friends agree to invest, set up a formal agreement between all parties involved. Doing so will help solidify the business and everyone’s interest in it.

Network

If you do not have any family or friends able to invest in the business, then network. Networking is the next best resource an entrepreneur can use. Finding similar businesses and business owners who understand the financial backing needed to start a business can be beneficial. Networking requires getting face-to-face time with potential investors. To get face-to-face time, research the potential investor. Being able to speak knowledgeably with the investor shows your appreciation of the investor and your dedication to the project. As for a meeting with family and friends, bring a business plan and information about the potential ways the other party can benefit from being involved. In order to motivate a potential investor to become an angel investor, you should also provide a sample of the product or service, if possible. For example, if the proposed business has to do with water filtration, then you may want to have a small-scale sample available to show how the product will work. While a business plan can explain, sometimes having something tangible available can help sway the investor.

Using the Internet

A great way to network is to utilize the Internet. The Web can help you recruit angel investors that you may not have been able to connect with otherwise. Using social networks can help spread the word about a business venture and can recruit persons interested in knowing more. There are also websites dedicated to angel investors. Looking at these websites may help cut down on the time needed to locate potential investors. In addition, you can create a website promoting your business idea and the financial goal.